Thanks for the excellent analysis. I am hoping you will be willing to tackle a question I have had for months, but no one has stepped up to the plate. I am (and will remain) long ctxs regardless of the reply, but am would appreciate your honest analysis in any event.
Q - CTXS, with msft as you correctly point out, have a monopoly in the relevant market. To what extent, and how (ie, ICA, load balancing, etc) can ctxs leverage its position as the sole product provider to create a standard, or a barrier to mstf replacing its software at some date. here is the easy way to think about it. FedEx invests in ctxs product, and build their infrastructure around it. assume that lots of other folks, some of whom do business with FedEx do the same. Hypothetically, 3 years from now, msft offers a competing product - lets say a BETTER product. Other than the costs of purchasing new software and retraining, is there some leverage created by CTXS installed base which would make it more expensive for FedEx to change providers???
Thx if you take a stab. |
